Tuesday, May 31, 2011

Regulator: Fannie and Freddie Shouldn't Be Subject to Freedom of Information Act

Government-controlled mortgage giants Fannie Mae and Freddie Mac were bailed out by taxpayers to the tune of $160 billion plus, but their regulator opposes making them being subject to the Freedom of Information Act,  reports Marian Wang.

Edward DeMarco, acting director of the companies’ now-regulator, the Federal Housing Finance Agency, told lawmakers last week that Fannie and Freddie “did not cease to be private legal entities when they were placed into conservatorship,” according to MarketWatch.

Note to DeMarco: They never were private entities, even before the bailout they were quasi-government agencies taht always had the implicit guarantee that they would be bailed out by the federal government, as they were.

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